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U.S.-Jordan Free Trade Agreement

Rules of Origin

Origin rules are used to determine what country an imported product is from in cases where two or more countries contribute materials, labor, or both to its production.

The rules are designed to ensure that only products that have been significantly manufactured in the United States or Jordan will enjoy duty-free treatment when exported to the other country.

The FTA's rules of origin are not substantially different from standard rules of origin.

For U.S. goods to meet FTA standards for export to Jordan, they must satisfy the following requirements:

  • Goods must be made entirely in the United States

o If any third-country materials are used, they must be "substantially transformed" by manufacturing or processing into US goods

o Goods must contain at least 35% US content. (Note: If this product also has Jordanian content, up to 15% of the Jordanian content can count toward the requirement of 35% US content.)

  • Goods must be imported into Jordan directly from the United States

Substantial Transformation Requirement

Few products, other than agricultural products, are made up completely of US content.

A product is substantially transformed when it undergoes a change in "name, character, or use" that is deemed "substantial."

Examples of a substantial transformation include:

Wood : Wood table

Glass sheet : Car Windshield

Some examples of manufacturing that do not meet the substantial transformation qualification include:

Blank ceramic vase : Hand-painted vase

Unfinished wood chairs : Finished wood chairs

Additional Resource:

U.S.-Jordan Free Trade Agreement Guide to the Rules of Origin

Prepared by the Trade Information Center